By Jaya Ramachandran
PARIS | 14 March 2024 (IDN)—The G20’s Gross domestic product (GDP) grew by 0.7% quarter-on-quarter, slightly down from 0.8% in the previous quarter, according to OECD provisional estimates.
G20 is an intergovernmental forum comprising 19 sovereign countries, the European Union (EU), and the African Union (AU). It works to address major issues related to the global economy, such as international financial stability, climate change mitigation and sustainable development.
The economic performance of G20 countries was mixed in Q4 2023. GDP growth weakened in China (to 1.0% in Q4 compared with 1.5% in Q3) and the United States (to 0.8% in Q4 compared with 1.2% in Q3). In Mexico, GDP growth fell from 1.1% in Q3 2023 to 0.1% in Q4. GDP growth slowed slightly in Australia and turned negative in Germany and the United Kingdom (-0.3% in Q4 in both countries).
GDP growth accelerated in the remaining G20 countries, most notably in Türkiye (to 1.0% in Q4 compared with 0.3% in Q3) and recovered in Canada and Japan after contractions in the previous quarter. In Saudi Arabia, GDP contracted, but by much less than the last quarter (-0.6% in Q4 compared with -2.3% in Q3). Growth remained unchanged from Q3 in Indonesia (1.2%), Korea (0.6%), Italy (0.2%), and Brazil (0.0%).
Initial annual estimates indicate that G20 GDP growth was 3.2% in 2023, the same as in 2022 (Figure 2). This contrasts with a slowdown in the OECD, as GDP growth fell to 1.7%[1] in 2023 from 2.9% in 2022 (see GDP Growth – Fourth quarter of 2023, OECD).
Four G20 countries recorded higher GDP growth in 2023 than in 2022. In India, growth accelerated to 7.7% compared with 6.5% in 2022—the highest annual growth rate among G20 countries for which data is available. India’s growth in 2023 was driven primarily by an 8.5% increase in investment.
Growth in China recorded an increase to 5.2% in 2023 up from 3.0% in 2022. Annual growth also increased in the United States and Japan. In 2023, GDP contracted only in Saudi Arabia (-0.8%) and Germany (-0.3%), while growth weakened but remained positive in the remaining 11 G20 countries for which data is available. [IDN-InDepthNews]
Photo: G20 2023 Chairman Narendra Modi greets the President of the African Union. Credit: g20.in
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